Since ADA rewards do not create a transaction till they are withdrawn, is it good to keep doing that to keep the cost basis accurate?
Which ADA wallet are you using? You want CoinTracker to reflect reality (e.g. what’s on the blockchain) so if you see ADA rewards showing up in your wallet that aren’t captured in CoinTracker, you can add them manually for now (let us know the wallet though so we can see if there is a way to automate this for you).
See that’s the issue. It shouldn’t matter. No transaction will ever be captured by your platform since rewards are never a transaction on the chain. There is only a transaction when claimed. So to capture it as a transaction it seems I should claim rewards every block because that creates a transaction with an accurate cost basis by claiming when I get them every block. This is a huge issue with VET rewards since there is no tracking at all. Along with THETA rewards since it pays out every tenish minutes. It’s a tax related mess I hope you have on your radar. At least ADA is every block which equals days and not minutes.
Thanks for bringing this to our attention. If there is no transaction for ADA and VET rewards, how/where is the reward amount tracked?
For ADA it gets deposited to a rewards wallet and automatically adds to the staking balance. It needs to be withdrawn to the staking wallet to generate a transaction. So if I don’t watch each epoch it will just rack up and then all be withdrawn at once. To me this seems to look like an inaccurate cost basis if I don’t know how much I was paid at each epoch. The rewards can be different each time depending on the pool performance. For VET it will generate VTHO when owning VET. Currently, 1 VET generates 0.000432 VTHO per day. There are no transactions generated for either of the earnings.
Got it, the only solution for this right now is to withdraw to create the transaction or manually add the reward transactions for when you are receiving the rewards. We’ll look into if there is a more automated solution.